An empirical study on the impact of recession on training

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An empirical study on the impact of recession on training and

development in small to medium sized firms in Ireland

MBA(HRM) Sara Naqi Mirza August 2013

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An empirical study on the impact of recession on training and

development in small to medium sized firms in Ireland.

By: Sara Naqi Mirza

Student Id: 1728354

Supervisor: Gay White

Word Count: 21,411

A dissertation submitted in part fulfillment of the requirements of the Masters in Business

Administration (Human Resource Management) to Dublin Business School and

Liverpool

John Moore’s University

August 2013

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DECLARATION

I, Sara Naqi Mirza, declare that the work contained in this

dissertation is entirely my own and that all sources used

have been acknowledged as per the requirements.

Signed:…………………………….

Date:………………………………

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TABLE OF CONTENTS

Chapter 1: Introduction……………………………………………….12

1.1 Introduction…………………………………………………….13

1.2 Background of the problem…………………………………….13

1.3 Aim and objectives of the research…………………………….14

1.4 Suitability of the researcher and interest of subject area ………15

1.5 Recipients of the research………………………………………15

1.6 Learning style of the researcher………………………………. .15

1.7 Limitations and contributions of the research………………… .16

1.8 Organization of the dissertation………………………………. .16

Chapter 2: Literature Review…………………………………,……18

2.1 Importance of SMEs in Ireland…………………………….... 19

2.2 Impact of recession on SMEs………………………………... 21

2.3 Training and Development………………………………….. 24

2.4 Training and development in recession………………….… .27

2.5 Effect of Training and Development on motivation ……….. 30

and performance

2.5.1 Social Exchange Theory……………………………………….…32

2.5.2 Training: a source of intrinsic or extrinsic

motivation?.................................................................................34

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2.6 Importance of "Effective" T&D Initiatives………………….34

Chapter 3: Research Methodology………………………………39

3.1 Research Questions……………………………………40

3.2 Research Methodology………………………………..42

3.3 Research Design ……………………………………..43

3.3.1 Research Philosophy…………………………..44

3.3.1.1 Epistemology -Interpretivism……………..44

3.3.1.2 Ontology - Subjectivism…………………..46

3.3.2 Research Approach :Inductive………………….47

3.3.3 Research Strategy: Case Study………………….48

3.3.4 Research Choice………………..……………….49

3.3.5 Time Horizon…………………………………...50

3.3.6 Data Collection and Analysis……..………..…..50

3.3.6.1 Data Collection……………………….50

3.3.6.2 Data Analysis…………………………52

3.4 Research Ethics……………………………………….53

Chapter 4: Data Analysis and Findings……………………...…55

4.1 Data Analysis………………………………..……….56

4.2 Research Findings……………………………….……58

4.2.1 Research Question no. 1…………………….….58

4.2.2 Research Question no. 2……………………….59

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4.2.3 Research Question no. 3…………………………61

Chapter 5: Discussion……………………………………………63

5.1 Discussion of the Findings……………………………..64

5.2 Limitations of the study…………………………………68

Chapter 6: Conclusion and Recommendations……………………70

6.1 Conclusion……………………………………………….71

6.2 Further Research…………………………………………73

6.3 Recommendations………………………………………..74

Chapter 7: Reflection and Skill Development………………… …76

7.1 Introduction……………………………………………….77

7.2 Reflection…………………………………………………77

7.2.1 Reflection on the Process…………………………….77

7.2.2 Reflection on the Sources…………………………….79

7.2.3 Reflection on Dissertation formulation…………… .80

7.2.4 Reflection on your own learning…………………….81

7.3 Skill Development………………………………………….83

7.4 Conclusion………………………………………………….85

Bibliography………………………………………………………….86

Appendices……………………………………………………………96

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Appendix A : Different Learning Styles…………………………..… .97

Appendix B: T&D techniques used within organizations…………... 98

Appendix C: Interview Guides………………………………………..103

Appendix D: Ethical Stances………………………………………….106

Appendix E: Request Email to companies……………………………107

Appendix F: Confidentiality Agreements…………………………….108

Appendix G : Personal SWOT analysis………………………………112

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LIST OF FIGURES:

Figure 1: Business economy in Ireland : SME % versus Non SME % by

sector.

Figure 2: Identifying gap and need for training

Figure 3: Bramley's model of Training

Figure 4: Developing a research question for a qualitative study

Figure 5: The Research Onion

Figure 6: Kolb's Learning Styles

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ACKNOWLEDGEMENTS

I have a few special people in my life , to thank.

First of all, Thank you PAPA! for your support, love and

encouragement. Thank you for being strong to send me away.

I love you so much!

My brother , Ali who has always been more confident than my

own self that I CAN DO IT!

My best friend Saba, You are my pillar of strength!

Thank you for being there for me through every thick and thin. We

truly have faced life together!

And…. this Masters is for my mother and sister .

For I know…You are very proud!

A special thanks to my supervisor Ms. Gay White for constantly

supporting me and being so encouraging.

Lastly, all those who took time out to participate in my research.

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ABSTRACT

Employees are regarded as assets to a firm. Training and developing them so that they

can contribute towards the success of a firm should be paramount.

Though, with the economic upheaval , and with pressures mounting on firms to survive,

it is widely assumed that these techniques and initiatives have taken a back seat, and

rather is the first area to face budget cuts.

The researcher has tried to investigate this school of thought. This research looks at the

SMEs with in Ireland . SMEs have always been regarded very important , heavily

contributing towards the Irish economy , which has been so badly hit in the past few

years because of recession.

Hence, this research is a study about the impact of recession on training and

development within Irish SMEs.

The researcher takes a qualitative approach towards data collection and through means

of interviews conducted on managers and employees found that firms who are looking to

survive and are in a financially strained position are cutting down expenditure in every

area and not just T&D, where as firms who are able to still perform well in the recession

situation have maintained their training initiatives, although the focus in on providing

customer service training.

The research discusses that recession has not been particularly hard on T&D , but rather

every area of the business. It also discusses how T&D is not the only element to provide

motivation to employees but elements like recognition and progression are considered

extremely important by employees.

The findings provides new insights to the literature that is already present and can be

investigated further with a larger sample size.

Key words: Training and Development (T&D) , motivation , recession , SMEs

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Excellence is an art won by training and habit

~ Aristotle